A proprietary trading firm (prop firm) allows traders to trade the firm’s capital instead of their own, often in exchange for a share of the profits.

Pros: access to large capital, low risk for trader. Cons: strict rules, potential for account loss upon rule violations.

If rules are broken or losses exceed limits, the account is typically paused or closed, but your personal funds are not at risk.

Yes, most prop firms pay traders monthly or bi-weekly, based on profit splits agreed in the contract.

Some firms may charge one-time evaluation fees or monthly platform fees. Always check terms before joining.